GS Engineering & Construction (006360) Q3 2026 earnings summary

Executive summary

• 3Q26 sales were KRW 2,744.2bn, down 14.5% YoY and 1.3% QoQ; operating profit was KRW 95.5bn, down 35.7% YoY but up 4.6% QoQ.

• 9M 2026 sales totaled KRW 7,924.1bn and operating profit KRW 260.4bn; net income was KRW 98.5bn.

Financial highlights

• YTD sales declined 31.6% YoY; new orders were KRW 9,863.4bn, down 16.3% YoY and 55.4% of guidance.

• 9M gross profit was KRW 909.9bn; profit before tax was KRW 162.0bn versus KRW 91.1bn, while finance costs fell to KRW 366.4bn from KRW 448.1bn.

• 3Q26 profit before tax was KRW 51.4bn, down 68.8% YoY; net income was KRW 73.4bn, down 39.8%.

• 9M net cash from operating activities was KRW 150.4bn, versus KRW 258.0bn; investing and financing cash outflows were KRW 88.3bn and KRW 572.8bn.

Outlook and guidance

• YTD new orders reached 55.4% of guidance; contracted orders were KRW 5.5tn.

• Priorities include selective, profitability-led bidding; residential focus on viable redevelopment and development, and overseas plant bids centered on profitable work.

• Growth initiatives include AI data centers, senior housing, renewables and BESS, nuclear/SMR, hydrogen and CCUS, waste-to-energy, water reuse, and modular and precast construction.

• Sale of the full GS Inima Environment stake to TAQA is under contract for USD 900m, subject to contractual adjustments; completion is expected before February 2027.